The China Federation of Logistics and Purchasing (CFLP) released the Prosperity Index of China's Logistics Industry for June on the 2nd. As demand continues to improve, logistics business volume maintains expansion, and the prosperity level further increases. The Prosperity Index of China's Logistics Industry for June stood at 50.8%, up 0.2 percentage points MoM.

[SMM Steel Morning Meeting Summary: Spot prices rise, trading volume increases] Yesterday, HRC futures surged strongly, with the most-traded contract closing at 3,191 yuan/mt, representing a daily increase of 2.24%. In the spot market, spot prices rose by 10-40 yuan/mt, and trading volume increased. In terms of supply, the impact from maintenance on hot-rolled coil production this week was 19,600 mt, a decrease of 32,800 mt WoW. Next week, the impact from maintenance on hot-rolled coil production is expected to be 2,800 mt, a decrease of 16,800 mt WoW. The impact from maintenance on hot-rolled coil production has reached its lowest point, further increasing the supply pressure of HRC. In terms of demand, end-use demand from the manufacturing sector remains relatively resilient, but seasonal decline trends have also emerged. On the cost side, according to the SMM survey, under the influence of production control policies, pig iron production decreased by 4,200 mt this week, but still remained at a high level. The support from furnace charge is unlikely to collapse in the short term. Looking ahead, the previous Central Financial and Economic Affairs Commission meeting issued signals on addressing cut-throat competition, enhancing market expectations for the July Central Political Bureau meeting. The pressure on the supply and demand structure may be expected to ease temporarily. In reality, the fundamental contradictions in the HRC market are not yet acute, coupled with moderate cost support. It is expected that the most-traded HRC futures contract will continue to consolidate at a high level in the short term.

Today, HRC futures surged strongly, with the most-traded contract closing at 3,191, representing a daily increase of 2.24%. In the spot market, spot prices rose by 10-40 yuan/mt, with trading volume picking up. In terms of supply, the impact from maintenance on hot-rolled production this week was 19,600 mt, a decrease of 32,800 mt WoW. Next week, the impact from maintenance on hot-rolled production is expected to be 2,800 mt, a decrease of 16,800 mt from this week. The impact from maintenance on hot-rolled production has reached its lowest point, further increasing the supply pressure of HRC. In terms of demand, the end-use demand from the manufacturing sector remains relatively resilient, but signs of seasonal decline are also emerging. On the cost side, according to the SMM survey, under the influence of production control policies, pig iron production decreased by 4,200 mt this week, but still remained at a high level. The support from furnace charge is unlikely to collapse in the short term. Looking ahead, the signal released by the Central Financial and Economic Affairs Commission meeting yesterday regarding addressing cut-throat competition has strengthened market expectations for the July Central Political Bureau meeting. The pressure on the supply and demand structure may be expected to ease temporarily. In reality, the fundamental contradictions in the HRC market are not yet acute, and coupled with moderate cost support, it is anticipated that the most-traded HRC futures contract will continue to consolidate at a high level in the short term.

[SMM Daily Coke Market Briefing] In terms of supply, most coke producers are still operating at a loss. However, excluding the production cuts in the early stage, production has stabilized recently, and there has been no further decline in coke supply. Meanwhile, the shipment situation of coke producers is moderate, and their own coke inventory continues to decline. Demand side, under the influence of production control policies, SMM pig iron output fell by 4,200 mt this week, but it still remained at a high level. There is still a rigid demand for coke, and some steel mills with low inventory are still restocking. In summary, there are fewer contradictions in the coke market fundamentals, and cost support is solid. The coke market may operate steadily in the short term.

Faced with multiple disruptive factors such as tax payment periods and the maturity of a large volume of interbank certificates of deposit, the overall funding situation demonstrated strong resilience during the quarter-end transition period at the end of June. Short-term interest rates fluctuated mildly, and market liquidity remained reasonably ample. Looking ahead to July, market liquidity may face periodic pressure due to factors such as fiscal payments, accelerated government bond supply, and tax payment periods. However, under the continuous support of the People's Bank of China and flexible and appropriate monetary policy adjustments, the overall funding situation is still expected to maintain a loose pattern. Industry insiders predict that despite local disruptions, the interest rate center will remain generally stable, with DR007 likely fluctuating within the range of 1.5% to 1.6%. There is still room for further monetary policy easing.

[SMM Steel Morning Meeting Summary: Are Cost Disruptions Limited? HRC Prices Fluctuate at Highs] Yesterday, HRC futures rose amid fluctuations, with the most-traded contract closing at 3,136, up 0.06% on a daily basis. In terms of supply, the impact from maintenance on hot-rolled coil production this week was 19,600 mt, a decrease of 32,800 mt WoW. Next week, the impact from maintenance on hot-rolled coil production is expected to be 2,800 mt, a decrease of 16,800 mt from this week. The impact from maintenance on hot-rolled coil production has reached its lowest point, further increasing the supply pressure for HRC. In terms of demand, the end-use demand from the manufacturing sector remains relatively resilient, but signs of seasonal decline have also emerged. Cost side, rumors of production restrictions on sinter in Tangshan circulated yesterday. According to the SMM survey, production restrictions on sinter in Tangshan steel mills do exist. However, the steel mills themselves have sufficient sinter inventory, which is unlikely to lead to production cuts in blast furnaces. Meanwhile, there is still an expectation for an increase in pig iron production from blast furnaces, and the support from furnace charge may not collapse in the short term. Looking ahead, the fundamental contradictions in the HRC market are still in the accumulation stage, but inventory pressure remains at a low level compared to the same period in previous years. Coupled with moderate cost support, it is expected that the most-traded HRC futures contract will continue to fluctuate at highs in the short term.

SMM Steel News on July 1: According to SMM statistics, the estimated total shipments of resources in mainstream markets this week were 275,200 mt, an increase of 31,500 mt compared to the shipment level WoW. By market:

SMM Steel News on July 1: According to SMM statistics, the estimated total shipments of resources in the mainstream market this week were 275,200 mt, an increase of 31,500 mt WoW from the shipment level. By market:

[SMM Daily Briefing on Coking Coal and Coke] In terms of supply, most coking enterprises are still operating at a loss, leading to a certain degree of production cuts. Meanwhile, the shipment situation of coking enterprises has improved, with their own coke inventory declining and sales pressure easing. Demand side, market expectations have improved, and steel mills' production enthusiasm is moderate, with a slight increase in replenishment enthusiasm. The control of arrival situations has decreased, and the demand for traders' speculative purchases has also increased. In summary, the fundamental contradictions in the coke market have decreased, cost support has emerged, prices have bottomed out, and the short-term coke market may operate steadily for the time being.